A monopolist will always equate marginal revenue and marginal cost when maximizing profit.

Question

Quizplus · Accepted Answer

A monopolist maximizes profit by producing the quantity of output where marginal revenue (MR) equals marginal cost (MC), as this is the point where the additional revenue from selling one more unit equals the additional cost of producing that unit, ensuring no further profit can be made by increasing or decreasing production.

A Monopolist Will Always Equate Marginal Revenue and Marginal Cost